The “strategic partnership” will enable customers to link their debit and credit cards with their PayPal account directly from their B-branded mobile banking app.
The group, which also owns the Yorkshire Bank, launched its account aggregation service in May enabling B customers to view accounts they hold with other banks in their banking app. This latest partnership enables PayPal accounts to be added in the same way.
The agreement will take effect immediately, with the services expected to be available to CYBG customers later this year.
Debbie Crosbie, chief operating officer at CYBG, said: “We know the way people access banking products is changing so we are continually looking at new technology and services that can make our customers lives easier. We look forward to working with the PayPal team.”